The Legend Sues SS Entertainment for Fraud and Embezzlement

Kpop group The Legend is taking action against their entertainment company.

The five members of the group recently filed a law suit against their management company to nulify their contracts, claiming that SS Entertainment failed to fulfill their management duties towards the group. Now, they have also accused the company CEO Park Jae Hyun of fraud and embezzlement. 

According to The Legends’s side, Mr. Park was not able to provide for the group as promised in the contract. The company failed to provide the group managers, transportation, and even failed to pay the electricity bill in the group’s dorm. The members were supposed to receive payment every 3 months but so far the CEO has not had the ability to pay them once. Because of these problems, the group is seeking to nulify their contract with the agency. 

Through their press release on July 13th, The Legend’s representative revealed that they were not allowed to see the the financial usage of the money invested in The Legend from the company. 

Below is the petition that the group filed with the Seoul District Court today:

From May 2014 until now there has been a large amount of money invested in the group, and although we have repeatedly requested to look at the account books in accordance with the Investment Contract and the Rights of Shareholders, we have been refused continously. 

It is Mr. Park Jae Hyun’s obligation to reveal the assignment of shares, distribution of profit, the lenders, and statement of accounts but he has failed to do so.

The only payment that has been revealed is the payment on performance outfits while the remainder of the transaction history was not made available.

 

Meanwhile, it has also reported that as the company could not manage to pay their employees, many have resigned from SS Entertainment. 

More details are sure to come as this legal case unfolds, so be sure to stick around MoonROK for more updates as they are made available.

 

Source: MyDaily

Image courtesy of MyDaily
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